The U.S. Government Accountability Office (GAO) has just issued a report on customer satisfaction and problems with wireless phone service. The GAO survey found that 35% of U.S. households primarily use wireless phones instead of a traditional landline phone. This statistic may be a primary reason why increasing scrutiny of wireless carriers and their business practices has appeared on the radar of the FCC and elected officials.

The report contained some good news for wireless carriers. The GAO found that 84% of customers surveys stated they are very or somewhat satisfied with their wireless phone service. The industry group, CTIA-The Wireless Association, issued a press release stating they were pleased that customers expressed this amount of satisfaction.

An area of concern for wireless carriers though may be that the GAO is also recommending that the FCC help to better define state and federal authority to improve regulation of wireless phone services in an effort to address such concerns as early termination fees (ETF). The CTIA press release also directly responded to concerns over ETF’s by pointing out that customers did have options to eliminate ETF’s through non-contract services and that those who incur ETF’s now benefit from pro-rated fees offered by wireless companies.

As much as the CTIA wants to put lipstick on the pig at the end of the day people are expressing frustration with wireless carriers, especially when it comes to contracts and ETF’s. If that frustration wasn’t being heard the GAO wouldn’t have done a report on the issue. This report should send a clear message to wireless carriers that elected officials are getting an earful from constituents and those officials feel they now must take action.

I fully expect there to be more regulation of wireless companies in the U.S. The writing is on the wall that it is going to happen. That regulation will finally address concerns over ETF’s and exclusivity agreements for devices. There is clearly no confidence that the wireless industry will be able to regulate itself in a manner that is acceptable to consumers.

Besides this report, which recommends better regulation, the industry also faces a Congress and White House controlled by the Democrats. Traditionally, Democrats have been in favor of increased regulation of industries. That being said, you can expect wireless carriers to make some big donations to Republican candidates during the next election to tilt the balance of power in an effort to slow down any regulation efforts.